Cryptocurrencies like Bitcoin are a “farce” and a sign of bubble formation in financial markets, Pascal Blank, chief investment officer of Amundi, said Thursday.
Bitcoin, which is trading at around $ 39,364, fell 35% last month after China stepped up efforts to ward off speculative and financial risks by taking action to tackle mining and trading in the largest cryptocurrency.
Speaking at a press conference, Mr. Blank called the cryptocurrency a “joke”, adding that it is a symptom of bubbles forming in the markets.
“Bitcoin will be remembered for pushing central banks to use digital currency,” he said, adding that governments and regulators will eventually “stop the music.”
Blank said that it is much more important for investors to increase their dependence on the Chinese currency, the yuan, than to diversify into cryptocurrencies.